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Commercial Pricing

Discussion in 'Business Operations' started by jojo8618, Sep 30, 2011.

  1. jojo8618

    jojo8618 LawnSite Member
    from memphis
    Posts: 2

    Im located in memphis, tn. I was wondering if there is a national or regional pricing structure for commercial. Also if small commercial is worth trying to go after? Any responses are welcomed thanks.
  2. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    No there is no pricing structure. If there was, it would be "price fixing" and that's not legal. Every size commercial is worth going after if you can get the price you need to make money. Put in your bid, if they don't like it, who cares there are a kabillion other places to bid, and there is always next year.
  3. jojo8618

    jojo8618 LawnSite Member
    from memphis
    Posts: 2

    Thanks for the information. Is there a certain man hour rate for small vs large commercial? Any thing helps . Thanks again.
  4. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Start out mowing residentials, not commercials...get a feel for how long it takes you to do things. Know your costs and decide what your time is worth to you. Then set your hourly rate to make that desired profit after all costs per hour are accounted for. You can then use that information to make a more effective bid on a commercial account
  5. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    low profit to free would probably be the pricing structure..
  6. centter

    centter LawnSite Member
    Posts: 6

    It really is hard to set a standard price for whatever you are going to do. Because you would not want to lose out on your competition if potential clients think that you are overpricing but one the other hand, you would want to maximize your profit. I think it is good to know the industry standard pricing. It would not be bad to get some information about your competition. Also you can get the price from how much you are going to spend for every project that you do and get the average.
  7. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    Exactly!! Figure out what your costs are to do commercial work and do it for that... then let me know when you have a fire sale on your equipment. just pm me.
  8. HenryB

    HenryB LawnSite Bronze Member
    Posts: 1,828

    Perfectly said. The cheapest guy gets it. And then he chases his money til the end od the earth.
  9. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    My commercials are great money makers. Not sure what you guys are talking about but it sounds like youre not happy.
  10. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    Do you bid against Brickman and Valleycrest?

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